Brands have also embarked on a retail expansion drive and global funds are looking for opportunities to invest in beauty startups as they bet on a growing market. Economic headwinds in China, Asia’s biggest beauty market, too are making them turn the focus to India, say executives.
Demand for beauty products from make-up and colour cosmetics to hair-care products and fragrances is growing rapidly, fuelled by social media influencers, aspirational consumption in small cities and towns and increasing ecommerce coverage.
“India is at the cusp of a new revolution in beauty … we are seeing consumption of beauty products growing dramatically in India,” said Biju Kassim, president, beauty, at fashion and beauty retailer Shoppers Stop.
Earlier this month, Shoppers Stop launched an exclusive store to retail global giant Estee Lauder group’s brands such as MAC and Clinique in India. The Raheja Group-owned Shoppers Stop has also signed a distribution partnership with Japanese beauty giant Shiseido-owned NARS Cosmetics for a launch in the second half of the year.
On June 15, French retailer Sephora launched Hollywood singer and actress Selena Gomez-backed premium cosmetics brand Rare Beauty in India.
Roping in well-known names to promote products
Amazon India too joined the beauty boom last week by launching its global beauty store to retail more than 60 international brands. Meanwhile, Reliance Retail’s Tira signed up actors Kareena Kapoor Khan, Kiara Advani and Suhana Khan as brand ambassadors – this is the first time a beauty retailer or brand has signed three brand ambassadors together. New Incubation Ventures, a fund backed by Estee Lauder Cos, too said it is identifying brands to invest in India.
“We plan to do one million consumer touchpoints this year with makeovers, skin consultations and fragrance discovery,” Kassim said. SS Beauty, Shoppers Stop’s beauty-only retail platform, plans to have 80 stores in the next three years, he said. It has about a dozen stores currently.
New Incubation Ventures, a strategic early-stage investment fund which invests in beauty businesses, in partnership with omni-channel retailer Nykaa, is identifying brands to invest in India, said Shana Randhava, the Estee Lauder-backed fund’s senior vice president. “With a higher degree of consumer awareness than ever and an influx of options unlike anything that the market has seen, India represents an exciting opportunity for the global beauty ecosystem,” Randhava said.
Rising income levels, Internet access and the young population are leading to a beauty boom in India that is projected to reach $17.4 billion by 2025 from $15.6 billion in 2022, a report by researcher Euromonitor said.
“In an era where discerning consumers constantly seek niche international beauty brands that can conveniently reach their doorstep, our commitment to source luxury beauty products from global brands remains steadfast,” said Zeba Khan, director of beauty, personal care and luxury beauty at Amazon India. Besides 60 international beauty brands including Paula’s Choice and Chopard, Amazon said it is retailing 5,000 products at its online store.
As India turns into a beauty hotspot, global brands and large retailers are roping in well-known names to promote their products.
Reliance Retail, which retails over a dozen international labels like Bobbi Brown, Clinique and Versace at its Tira stores, plans to roll out large-scale mainstream and digital campaigns featuring its three brand ambassadors.
“Tira is also exploring collaborative partnerships with wellness centres and salons for cross-promotional campaigns and using tech experiences such as augmented reality and virtual consultations to convert trials into long-term loyal customers,” an executive aware of the plans said.
Estee Lauder recently named former Miss World Manushi Chhillar as a global brand ambassador, while Mac Cosmetics hired Bhumi Pednekar as its first Indian ambassador. Maybelline New York has roped in Suhana Khan, and Korean skincare maker Laneige has signed Athiya Shetty as the brand’s first Indian ambassador.
“India is at a place today where China was some years back in terms of aspirational growth and consumption,” Anchit Nayar, ED at Nykaa Beauty, said in a recent interview with ET. Terming consumption patterns in India as “very promising,” Nayar said: “The next ten years will look really good for beauty and retail … this is a multi-decade story.”
